How Strong is Your Customer Loyalty Program?

How well do you know your customer-base? Consider if you know their true behaviors and instincts. How about what makes them tick or what drives them to stick around? While many think that price is the main cause for customer churn, the actual culprit is overall poor customer service – something that the right call center software can help fix. In fact, a customer is four times more likely to turn to a competitor if the problem they encountered was service related as opposed to price related. Consider if you knew the following two things about your customers:

Your customers will stick with your loyalty programs…but only if you get them started.

Research shows that acquiring a new customer costs about five to 10 times more than it does to simply sell to an existing one. Even more, your current customers spend about almost 70 percent more than new ones. You need to keep these customers coming back, and loyalty programs have been known to do just that. You just have to proactively get your customers to take the first step. Research also shows that of the $48 billion worth of perceived value in reward points and miles distributed by American businesses on an annual basis, 33 percent of goes unredeemed by customers. Make it easy for your customers to be a part of your loyalty program; in fact, customers are twice as likely to stay with a loyalty program if the program already appears to have been started.

Help your customers so that they can take that first step toward long-term loyalty.